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Huge increase in subscription commissions!

Started by MatHayward, May 13, 2014, 21:48

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MatHayward

Hi Everyone,

I've got exciting news to share with you!  Fotolia has changed the commission structure for monthly subscription downloads for all contributors. 

The changes have taken effect as of today so you may have noticed some differences already.  From now on, all  contributors that are opted in to Dollar Photo Club will receive 25% of the price paid for a subscription download.  For example, a $25 monthly subscription provides 5 XXL images resulting in a $5 price per image.  Your commission on that sale will now be $1.25 instead of the flat rate it has been.  In some cases this change can result in more than a 500% increase in commissions. 

As subscription quantities increase, the cost per photo goes down.  The good news is that your commission will never go under what it is now .  In other words, the minimum commission you will receive is the same commission as it has always been.  This change can only affect you positively.

The 25% rate is for those opted IN to DPC.  If you choose to opt out of DPC, Fotolia will still pay a 20% commission for subscription sales at Fotolia which in some case is a 400% increase for existing sub commissions.

Some more news will come soon regarding the Extended license at Dollar Photo Club.


Cheers!

Mat



ShadySue

Fight back with bribery and whitewash it.  >:(


Jo Ann Snover

But what about the royalty on the Dollar Photo Club sales themselves - is that changing? 25% of $1 is 25 cents - so the existing rates would apply, correct?

somethingpretentious

Leaf, maybe MatHayward should get a Fotolia logo on his profile image so it is clear for everybody that he works for Fotolia?

MatHayward

Quote from: Jo Ann Snover on May 13, 2014, 21:55
But what about the royalty on the Dollar Photo Club sales themselves - is that changing? 25% of $1 is 25 cents - so the existing rates would apply, correct?

That's a good question Joann.  The commission rate on Dollar Photo Club sales will be a subscription commission based on rank as it has been.  Here is a breakdown of the rates for DPC commissions.

White    0.25 credits    
Bronze     0.27 credits    
Silver     0.29% credits    
Gold     0.31% credits    
Emerald    0.33% credits    
Sapphire    0.35% credits    
Rubis    0.37% credits    
Diamond    0.40% credits


-Mat

ShadySue

But with all the SEO, tweeting and everything else you're doing to push DPC, who's going to be buying from Fotolia?

Shelma1

This makes me so aggravated I'm removing all my files from Fotolia. Not that I had many there to begin with.

Anyka

I suppose that is good news, but I really had hoped for a higher threshold at DPC.  If DPC is really meant for large buyers, then 10 dollars is WAY too low.   Raise the bar to 99 dollars, and I will gladly opt in again.

r2d2

We should shutdown DPC.
War on socialmedia and contacting dpc contributors via mail. Organised resistance should be our answer. :-*
No agency should get more than 50% commission and together we can enforce that.

Ron

Sold an hour ago


License   XL
Price   N/A
Commission   0.27


No change.

leaf

I know we are all frustrated with DPC, but .. er.. isn't this good news?

Fotolia are making it more lucrative to be part of DPC.  Isn't that what we want/wanted?

just asking.....  (goes and hides behind the tomato shield)

Shelma1

Quote from: leaf on May 13, 2014, 22:11
I know we are all frustrated with DPC, but .. er.. isn't this good news?

Fotolia are making it more lucrative to be part of DPC.  Isn't that what we want/wanted?

just asking.....  (goes and hides behind the tomato shield)

Not necessarily. DPC will still undercut regular sales everywhere else, so you'll get fewer and fewer Fotolia (and other site) sales, so the "huge" increase in commission won't amount to anything.

Ron

Quote from: leaf on May 13, 2014, 22:11
I know we are all frustrated with DPC, but .. er.. isn't this good news?

Fotolia are making it more lucrative to be part of DPC.  Isn't that what we want/wanted?

just asking.....  (goes and hides behind the tomato shield)
I think the problem is the cheap entry level devaluing all images and potentially causing competition to do the same if DPC is a success. XL at CanStockPhoto cost 10 dollar, its 90% cheaper at DPC.

chromaco

Quote from: leaf on May 13, 2014, 22:11
I know we are all frustrated with DPC, but .. er.. isn't this good news?

Fotolia are making it more lucrative to be part of DPC.  Isn't that what we want/wanted?

just asking.....  (goes and hides behind the tomato shield)

Not really. If someone wants one of my images they can buy it from my symbio-site at $14.75 or via subs at SS for a $250 commitment... or 10 of my images for a $10 commitment at DPC. I need 59 sales at DPC to match just one on my own site. Still look good to you?

Jo Ann Snover

Volume discounts shouldn't start at a $10 level - at a bare minimum, that's what must change.

loop

In my humble view, that seems to tell that Fotolia foresees itself making money with DPC, not with Fotolia.

Mellimage

Technically it is good news (and I appreciate that Mat came to the lion's den and brought the news).

It does not neccessarily make opting in into DPC more attractive, because I might get higher subscription commissions on Fotolia than on DPC. What it does is (from what I see and understand) it rectifies the injustices in contributor shares brought on by the mini-sub-programms.

On the other hand - it also makes following through how commissions will be calculated extremely difficult and it does not prevent FT from slashing down subscription package prices tremendously - in which case contributors will earn their agreed share, but their RPD is gonna sink (I foresee commissions below 25 cents or 20 cents in the future). This will need careful watching!

Goofy

Now, we have some good thoughts being tossed on the table. It kind of reminds of of when Senior Management tells the union flat out 'No' but changes its mind and is willing to listen to the employees... 8)



luissantos84

so FT subs went up to 20% (actually we don't know what was before right?) if you are opted-out and 25% if opted-in

why would we opt in? for an extra 5% on 10$ plans?

maybe I am missing something

leaf

Ah yes OK, well I can still agree that the minimum 'buy in' for the DPC is low - just saying that in terms of commissions it is a step in the right direction and looks ok.

dirkr

Just to clear that up a bit:

If I understand that correctly, it is NOT about DPC directly.
Fotolia is raising the commission they pay on the monthly subscriptions.
Until now all we receive is our regular subscription rate.
For example the smallest package sells at $25 for 5 XXL images, i.e. we used to receive $0,25 - $0,40 per sale depending on our rank.

That is 5% - 8%.

Now they raise that to a flat 20% (with a lower limit of the old rate).

That alone is a good move.
While I would like to receive the rate according to my rank (as these are not really subscriptions, but rather credit packages under a different name) it is still an improvement.

Now the connection to DPC: If you opt your portfolio in to DPC, that rate (for the monthly subscriptions) goes up from 20% to 25%.

That's how I understood it.
@Mat: Correct?

And another one: Will FT consider raising the entry level for DPC to something realistic?
Only then will I opt back in.

heywoody

I haven't been following this DPC thing so dumb question - is this an opt in / opt out thing & how do we know if we have been automatically opted in?
"When it's good, it's really good and, when it's bad, I go to pieces"

MxR

what!! im silver, if you sold for 5 dollar my rate is 1,25 in or out of your S-H-I-T DPC...¿are you paying 0,29 for a 5 $ sale?

I desire Fotolia Crush!